Silver Prices Tug-of-War Between Geopolitics and Interest Rates

Silver prices have been volatile in recent days, trading around $59 per ounce. The metal's value is being supported by geopolitical risks and weighed down by expectations of interest rate hikes.

The primary driver behind silver's rally is the ongoing standoff between the US and Iran over the Strait of Hormuz. Iran has explicitly rejected US conditions for negotiations, escalating tensions in the region.

Market participants are recalibrating their interest rate expectations for the Federal Reserve, with a 67% probability of a September rate hike. New York Fed President Williams has signaled a 'steady hawkish' stance, indicating policy patience within an anti-inflation framework.